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NEW DELHI: Prominent fine-dining restaurant chains in the country are increasingly launching step-down versions of their eateries at much-lower price points to boost their business by catering to middle-class consumers in a slowing economy.

In the last six months or so, Yeti launched Yeti Express, Punjabi By Nature launched Punjabi By Nature Quickie, Oh! Calcutta launched Oh! Calcutta Express and Busaba launched BusaGo. If the flagship brand offers a meal atRs 750-1,000 per person, a meal at the step-down versions cost as low asRs 200 per person.

"The quick meal segment is growing rapidly and that's why most niche players are experimenting with quick service outlets," said Anjan Chatterjee, founder of Specialty Restaurants that operates Oh! Calcutta and Mainland China chains.

Nikhil Chib, chef-turned-director of Mumbai-based Asian dining chain Busaba, said it's the only guaranteed success route for restaurateurs today. "From Colaba, I have expanded to the mid-market offering and we are even rebranding a Busaba to a BusaGo in Parel. We hope to get a payback of our investment within 12 months, instead of the regular two to three years," he said.

At the quick casual BusaGo in Mumbai the earnings are some 15% more than what its parent restaurant Busaba makes.

With higher rents and capital expenditure, the industry is realising that fine-dining restaurants make less business sense than quick casual ones catering to middle-class Indians who eat out but don't spend big.

Dhaba by Claridges from The Claridges Hotel's famous Dhaba restaurant, Made in Punjab by Jiggs Kalra, Speedy Chow by Mamagoto and Kylin Express from Kylin Premiere as well an Indigo Deli from the Degustibus hospitality group are all examples of this. "The high-end market in India is still premature and we have a far more rapidly growing mid-segment market," said celebrity chef Rahul Akerkar, director of iconic Mumbai restaurant Indigo. The Indigo Deli concept in Mumbai caters to the Rs 700 budget customer, he said.

Andrea Aftab Pauro, promoter of Delhi-based Italian chain Amici Cafe, has set up two quick service joints — Amici Pronto and Amici Gourmet — in south Delhi malls. "India is price-sensitive and restaurateurs are waking up to that.

Though tighter budgets don't mean people will want to eat bad quality food," he said.

The step-down restaurants manage to cut costs by means of leaner menu as well as lower rents and overheads. They open outlets in food courts, saving on furniture costs and enjoying exposure to a large number of consumers. The cost of setting them u p can vary from Rs 50 lakh to Rs 1 crore, depending on the space and rent agreements, compared to at least Rs 3 crore for a full-service restaurant.

Arjun Puri, director of real estate firm Puri Constructions that runs Delhi-based North Indian chain Punjabi By Nature, said the company expects Punjabi By Nature Quickie outlets to attract double the walk-ins than its main chain. "Our margins are lower, but the volumes will make up for the business," he said. It is launching 10 fast casual restaurants that will cater to Rs 300-Rs 500 customer.

Zorawar Kalra, owner of Massive Restaurants, said its mid-market chain Made in Punjab serves close to 500 people a day, double that of its upmarket chain Masala Library. The EBITDA of Made in Punjab, at 25%, is just 5% less than that of Masala Library, he said.

Many of these mid-market chains now look to expand to smaller cities. Azure Hospitality, which runs upmarket Asian chain Mamagoto and mid-market chains Speedy Chow and Roll Maal, plans to open four Speedy Chow and three Roll Maal outlets in the third quarter of this year in tier-I and -II cities such as Jaipur.